Question

What effect will firms enteringentering have on the market​ price? when firms enterenter​,

a. market supply will increaseincrease​, decreasingdecreasing price.
b. market demand will decreasedecrease​, decreasingdecreasing price.
c. the average total cost of production will decreasedecrease​, decreasingdecreasing price.
d. market supply will increaseincrease​, increasingincreasing price.
e. the marginal cost of production will decreasedecrease​, decreasingdecreasing price?

Answer 1

Law of supply: increase in price, increase in supply

law of demand: demand increases, price increase

So the answer is d.